Northland Power lifts 2017 forecast, concludes review

Aug 10 (Renewables Now) - Northland Power Inc (TSE:NPI) on Wednesday increased its guidance for 2017 EBITDA and free cash flow and announced it will continue to operate and pursue future growth opportunities as an independent publicly-traded clean power company.

The review of strategic alternatives for the Canada-based company, launched in July 2016, has been concluded. James Temerty, founder and largest shareholder, said that Northland now has a much stronger platform than it had when initiating the review. “Given the substantial progress we have made and the numerous growth opportunities available, the Board of Directors and management have concluded that our current platform as an independent Canadian public company and leader in the international clean energy infrastructure sector is the preferred strategy going forward.”

NEW FORECAST

Northland Power lifted its forecast for 2017 adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to between CAD 710 million (USD 558.5m/EUR 476m) and CAD 750 million from a previous range of CAD 660 million-710 million. The change is based on solid performance, a favourable foreign exchange rate and an improved outlook for Northland's facilities.

Free cash flow per share this year is now seen to reach CAD 1.18-1.30, as compared to earlier projections for CAD 1.03-1.18. The forecast excludes net pre-completion revenue from the 332-MW Nordsee One offshore wind project.

RESULTS FOR Q2 2017

The company’s profits and revenues increased significantly in the second quarter of 2017, and one of the key reasons for that was the completion of the 600-MW Gemini offshore wind farm in the Netherlands. Offshore wind electricity production jumped by 432,280 MWh. Despite a drop in solar power generation, onshore renewables output was also up by 15,794 MWh.

Results for the quarter are available in the table.

All in CAD million

Q2 2017

Q2 2016

H1 2017

H1 2016

Net profit (loss)

61.7

23.4

161.85

(68.3)

Adjusted EBITDA

168.2

103.9

366.3

207.9

Sales

322.35

176.6

686.4

354.75

Free cash flow

99.7

46.3

141.3

91.2

Free cash flow per share (in dollars)

0.573

0.270

0.811

0.531

Electricity generation (in GWh)

1,312

1,294.5

3,021

2,715

Northland continues to pursue business opportunities in natural gas, wind, solar and hydro. It currently owns or has a net economic interest in 1,754 MW of operating capacity.